HRM Report: HRM in Business and Organizational Performance

This comprehensive HRM report, focusing on a Foundation Degree in Business and Management, delves into the core functions of Human Resource Management within an organizational context, specifically using Tesco as a case study. The report meticulously examines the effectiveness of recruitment and selection strategies employed by Tesco, analyzing both internal and external methods, including promotions, transfers, direct recruitment, advertising, and employment agencies. It then proceeds to analyze various approaches to talent management, exploring best practice models and their impact on organizational performance. Furthermore, the report evaluates the HR systems and procedures that Tesco utilizes to achieve its business objectives, covering performance management, training and development, compensation and rewards, compliance, employee engagement, and growth and expansion strategies. The analysis incorporates at least eight academic sources and provides a detailed understanding of how HRM contributes to the success of a major retail organization.

HRM Report

Table of Contents
INTRODUCTION...........................................................................................................................1
LO-1.................................................................................................................................................1
Presenting the role of HR functions.......................................................................................1
LO-2.................................................................................................................................................3
Examining the effectiveness of different strategies in organization .....................................3
LO-3.................................................................................................................................................6
Presenting the approaches used to manage talent within organization along with exploration of
models.....................................................................................................................................6
LO-4.................................................................................................................................................8
Explaining the Human resource system and procedures that will help in achieving the
objectives of organization.......................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management (HRM) is the practice of managing people to attain better
performance. It is one of the strongest pillar of a company that helps to lead a business at right
direction. Similarly, the present study shed a light upon HRM and its importance within an
organization. The chosen firm for this report is Tesco, deals at retail industry and recognized as
one of the top company in UK. It operates at different locations and currently it has more than
700 stores at global level with thousands of employees. This reflects that company has a brand
image at global level.
The current study will presents the role of HR function and elaborate the effectiveness of
recruitment and selection strategies in order to maintain organization performance. Moreover,
report will describe the approaches used by a company in order to manage talent. Also, study
explore different HR systems and procedures and how they assist to attain the defined business
objectives.
LO-1
Presenting the role of HR functions
HRM is mainly concerned with hiring, motivating and maintaining workforce within an
organization. They also develop strategies in order to manage people that helps to attain better
performance. In every organization, HRM department handles all aspects of employees so that
they attain the set objectives. They are also responsible to hire best and talented workers for a
firm so that company stay ahead in competition (Cheng and Hackett, 2021). Also, workforce
planning and implementing new strategies for company's growth are some of the best functions
that assists business to run effectually. Thus, there are different HR functions which are as
mentioned below:
Recruitment and selection: One of the most important function of Tesco HR is to attract
and select the best/talented people for a firm. For that they also use different recruitment tools in
order to hire the best candidate for vacant seats. Therefore, company also engage in different
recruitment agencies for faster process. However, recruitment procedure and selection process
also attract right candidates that helps to create talent pool. In the context of quoted firm, it uses
online application to hire any employee because it is not easy to deal offline at different country
(12 Key functions of Human resources, 2020). Thus, it is clearly analyzed that selecting the best

candidate among many is the main function of HR who assists to meet the organizational goals
as well.
Performance management: second most important human resource function
performance management whose aim is to ensure productivity by defining different KRAs. HR
are also responsible to identify the gap in performances and then make actions accordingly. This
is done by using 360 degree scale or set benchmark that assists to review performance of each
employee (Ahammad, 2017). This also assists to keep employees motivates and reduce conflicts
along with increasing job satisfaction. Performance appraisal can be done at quarterly or
annually that helps to boost up the performance of employees. Hence, it is one of the best ways
to build future of workforce that helps business to sustain brand image.
Training and development: Another key function that helps to enhance the personal and
professional growth of an employee. It is performed to fill a gap by using any techniques.
Moreover, training is a strategic and mandatory procedure that helps to understand
organizational goals, expectation by aligning workforce with firm's objectives. These sessions
also helped staff to find many growth opportunities in near future. For example, Tesco provides
on and off the job training sessions to their employees so that they feel motivated and helps to
enhanced the performance level as well.
Compensation and Rewards: This assists company to manage people easily within a
working environment such that compensation includes rewards. This can be in the form of
monetary and non monetary forms that helps to keep motivating employees. Also, if any specific
task will be attained by a team then HR provides benefits or recognition. It is so because it
directs impact upon attrition rates and also performance of employees will be enhanced (Sekhri
and Cheema, 2019). Apart from this, HR of Tesco setting compensation levels in order to match
market by using benchmarks that helps to identify whether the selected employee have attained
the task or not. This strategy also assists firm to retain existing talent within industry and drive
their performance as well.
Compliance with laws and regulations: HR also ensured that company complied with
laws and regulation that helps to develop good relationship between employee and employer.
Only HRM understand these legal matters which includes, laws defined by government i.e.
employment law, equal opportunities act, discrimination etc, government and tax reporting etc.
Apart from this, company have to comply with Health and Safety act in order to bring better and

safe environment for employees (Al Shobaki and et.al., 2017). Further, HR of Tesco also
provide free health camps and paid medical insurance policies to engage for their employee
health and safety.
Employee engagement: This function has gained much importance over the last couple
of years which also affect employee turnover in positive manner. For that, it also implements
many strategies in order to enhance engagement. Having a dedicated employee engagement
team within an organization assists to hold top position within competition. Also, through such
strategies, company increases productivity and motivation so that it directly cause positive
impact upon the business performance (Sarvaiya, Eweje and Arrowsmith, 2018). Additionally,
introducing different initiative pertaining to employee engagement also bring new and bright
talent within a firm.
Growth and expansion: Another important function that helps a firm to increased its
performance. For that, HR of Tesco make effective planning by considering different aspects so
that it will help to meet the defined aim of a firm. Moreover, with the help of this key function,
company is able to expand its operations at different level (Ahmed and Ogalo, 2019). Also, with
proper consultation from different department, HR develop strategies to enhance the brand
image at global level. Hence, this in turn assists a business to accept new challenges and groom
itself so that brand image will be sustained at global level.
Therefore, it is analyzed that role of HR function is important within an organization, as it assists
to handle various departments. Also, HRM is deal with planning, controlling, directing and
organizing company activities that helps to meet the defined aim of a firm and also sustain the
brand image at international level as well.
LO-2
Examining the effectiveness of different strategies in organization
Recruitment strategies:
Recruitment is the process of hiring, identifying, screening suitable candidate for the job
in the organization. This is also known as involved in choosing individuals for unpaid roles.
Effective recruitment process are used on both form that are internal and external candidate.
According to Tesco internet and employee are the most effective method for recruiting.
Internal recruitment: In this recruitment strategies the business is looking for the
employee who is working with them in same organization (Internal recruitment. 2021). It is

easier for the candidate to assess internal candidate because they have track record of them, and
they do not have to waste time in taking interviews for the job. It helps Tesco in cutting down
their cost and save money to take benefits in the future (Xanthopoulou and et.al., 2019). The
type of internal recruitment are:
Promotions: It is the important part for every business that means promoting their
employees to upper level by giving more responsibility and prestige. It plays an important role in
Tesco by this firm can save their time and money. It helps in giving opportunities to the
employees that will result in motivation and retention. It also results in increasing the employee
loyalty towards the organizations goals. It results in benefit for the company as it creates
differentiation, greater revenue, a source of information, helps in focusing market approach and
communicating approaches. Tesco uses this to promote employee performance, morale and
ambition.
Transfers: This means shifting one person to another for the same job whether in
another branch, state or country. It is important for the organization because it helps in
maintaining relationship between employees to avoid conflict in work and make them
conversant with different task. It plays an effective role for employee in form of opportunity to
gain wider and take broader experience withing the organization.
External recruitment: It is the process when business look for the employees from
outside to fill vacancy for any suitable applicant. This method is efficient for the organization in
promoting themselves online, arranging and holding interviews, deciding right candidate for
right job, creating a job advertisement for the position and reviewing and setting tasks. The
effectiveness of external methods are:
Direct recruitment: This act as the effective method for recruiting employees as
unemployed person can contact to the employment section of the enterprise to apply for the job.
This is not so important method for Tesco as they want skilled people for their company. This
works in effective way only when the company have rush of work and the workers are absent in
large numbers.
Casual callers: In this method the organization keeps the number and name of the
people whom they have to contact for filling the job vacancy. These methods result in good
source of manpower for the organization. It is effective because the firm can contact number of
people to let them know about the vacancy (Arunprasad, 2017).

Advertising: To make business successful the best method is effective advertisements
that is produced by advertising that will help company to create a positive perception about their
brand or to improve their existing position related to products or services. It helps Tesco to
determine that their ads are hitting the audience as per set by the organization. This effectiveness
helps in knowing the strengths, weakness and ROI of specific campaigns.
Employment exchanges: They are the network which is running by the government who
have made it compulsory for the employees to fill vacancy through employment exchanges. This
result in effectiveness for the candidate as they became the part of live data of registration for
the organization. This will help job seekers to find the suitable job and for organization it will
help them find suitable manpower (Bondarouk Parry and Furtmueller, 2017).
Placement agencies: In these methods the company give right to the enterprises for
recruiting and selecting the employees. These agencies are specialized in supplying the
categories of workers that are needed by the organizations. Sometimes it results in benefit for the
company as it is not possible for the Tesco to reach out passive candidate which is good for the
job, so they give that work to the agencies which can give guarantee for longtime hire of
employee.
Selection strategies:
It is an important process for the organization as good hiring resource can result in
increasing overall performance of the business.
Announcing the job: It is important for the organization as it helps them to create new
positions by listing the desired qualification for job. It deals in benefit for the company by this
they cn find out degree, certification and number of experience and their background. With this
they can announce the job by different social media apps that are Facebook and linkedln.
Reviewing candidate applications: This is the effective method for the organization as
they can find out by seeing the qualification that the person is suitable for the job or not. These
activities not only help to assure that company is engaging high-quality staff member, but they
also help to protect structure from workers with a poor reputation, low employment principle or
those who have committed a crime.
Conducting initial candidate screening: These results in effectiveness for the
organization as they can take information about the candidate in for of their communication

skills, ability to listen, attitude, sense of humor and professionalism. By call Tesco can know
about the candidate by determining experience, right education and knowledge to do job.
LO-3
Presenting the approaches used to manage talent within organization along with exploration of
models
Talent management is a constant process that involves only attracting and retaining high
quality employees, also motivating them to improve their performance as well. Therefore, the
primary purpose of a talent management is to create a motivated workforce so that they share a
long term relationship with them (Krishnan and Scullion, 2017). So, it is a way to achieve high
position and derived the best outcomes for the welfare of a company. HR of Tesco uses
following approached in order to manage the talent such as:
Rewards and recognition: It is one of the best method that helps to manage talent within
an organization. With the help of rewards, HR motivate, engage and manage employees in better
way. It can be in the form of monetary and non-monetary benefits. Secondary studies also
revealed that it is considered one of the best way and prized are most relevant for employees that
helps to improve their performance.
Opportunities for continuous improvement: To manage talent within an organization,
company has to equipped right tool that is able to maximize their own potential. Further, for
continuous improvement of a firm, it is necessary to have complete development of their
employees. This ensures that cumulative skills within a firm is updated, upgraded so that
employees will be easily managed within an organization.
Collaborate-coach: Another good practice which is completed by HR of a quoted firm.
This approach assists to make talent management more effective by involving coaching,
mentoring and collaboration strategy (McDonnell and et.al., 2017). Therefore, with the help of
such practices, company is able to enhance the current performance so that employees also
contribute their best in order to manage the work in an effective manner. This in turn also assists
to improve culture and as a result, employees are comfortable within an organization.
Hire top talent: One of the best strategy used by HR in which specific job description is
designed that helps to meet the defined aim of a company. Therefore, employees will perform
well and probably reach high performance faster so that it able to grow a business at faster pace.
Therefore, hiring a talented employee will assist company to prepared for a challenge and

develop strategies in order to minimize risk. This in turn helps to manage talent within an
organization so that performance of a company automatically improves.
Therefore, it is analyzed that through talent management, company retain their
employees, allow firm to stay competitive and this in turn drives towards an innovation (Talent
Management, 2020). Moreover, through talent management model, company is able to motivate
the employees.
Best practice model of talent management:
The Best practice is the description of doing work in the best way in any situation. These
practice can be used in future as well. Model helps in defining and presenting in simple form for
existing and future situation. Talent management is the practice that involve series of processes
arranged in systematic manner (Chatzidimopoulos and et.al., 2019). These model complete one
another and contribute to entire talent management. Model include following steps that are:
Planning: To initiate planning the primary role of organization is identifying the
business strategy. Planning coordinate with talent management model to decide the overall goals
of the organization. If the organization have proper planning strategy then only they can
complete their work on time. Tesco use this model to plan for job requirement, by giving job

information like responsibilities, roles and duties and developing the plan for recruiting
workforce. It helps in recognizing current organization talent.
Attracting employees: The function of model is related to attracting employees by
giving them new responsibilities. Step in talent management theory is reach out to potential
worker. These process includes various functions that are related to the attracting that are
marketing, if the marketing strategy of Tesco is the best then that will result in attracting large
number of customers. Developing EVP which is related to giving benefits to the employees as
per their skills. Talent acquisition it means recruiting right person as per required by Tesco.
Recruitment: It is the process that is used by the company to hire or find the candidate
for the vacant job. This recruitment practice is done by the HR to give benefits to the company
by hiring the best employee (Cheng and Hackett, 2021). HR uses strategic planning for
scrutinizing and screening candidates. The step of this process are done in various stages that
are:
 Test series
 Interviews in personal or groups
 Selecting candidate with special capabilities
Retaining: It is the process of keeping people to work for company for longer period
time. By feeling all the employees needs that will make company an enjoyable and meaningful

place to work. With the help of training and other types of engagement employees have chance
to make career with leaving their positions. It can be achieved by focusing monetary and
company culture.
Transitioning: After the process of hiring and developing company needs to plan
employee transactions that is related to giving full knowledge of business to the employee. This
is used tp promote employees from one place to another department and office. If any worker of
company want to leave the company then it is the duty of them to know why they are leaving.
LO-4
Explaining the Human resource system and procedures that will help in achieving the objectives
of organization
Human resource system is the tool that allow them to store information, processed and reported
upon. It is thing which needs timely betterment and change, development is necessary for HR
systems as the business organization step up (Types of HR Systems. 2020). The function of HR
are mainly conducted through HR systems that are:
 Helps in producing variety of graphs and charts.
 It helps in creating a set recruitment procedures.
 It allows employees to take holiday on their own request
 It maintains the shift plan of the employee to make work easier for the company.
Types of human resource systems are:
For starting phrase: These phrase is used by the business who are in starting phase.
Payroll: These systems help in recording and controlling all the information that are
related to the salary of the employees (Krishnan and Scullion, 2017). Once the company have
installed this software it will do varies types of activities that are fund transfer of workers,
compensation calculation and bank account handling of the company and also help the user to
handle their tax using this software. For Tesco it is very important as it is very big. If any failure
regarding the payments of the employees then it will direct affect the overall performance and
productivity of company. Other benefit of using this software is that it manage the payroll taxes,
which is very helpful for any enterprise as the tax section is where most of the mistake and
concern of any firm happens. The software helps in eliminating all the errors which will result in
saving time and money.

For growing phrase: These are used by the firm which have fast growing business.
Personnel tracking: These will help the organization in tracking data about the
employees of the organization. Software includes the information like name of employee, work
history, address, job title and certifications. By using this software human resource can save
their time with more accuracy, unlike a spreadsheet. At the time of growing phrase the company
must carefully read about the errors which can reduce the efficiency of organization that why
company uses this software so that their will be no errors in the future. The company who have
growing business must use this software which will result in betterment.
Performance management: This software is used by Tesco to set their individual goals
and helps in tracking their overall performance. Many activities like feedback, reporting,
document storage are performed using this software. In an increasing business structure, it is
important to track the worker performance to come up with new strategies, for this all
performance management system can be of be the best method. For the betterment of
productivity, performance boost and increasing the profit of an organization the performance
management software can be of great usage.
For established phrase: These systems are used for the business which have established
themselves in business sectors (Sardi and et.al., 2020).
Compensation management: It is the system used by the company to handle functions
like revenue, currency fluctuations and budget. It will help company to push themselves to
future heights. The compensation management system can recommend bonus payouts based on
the performance of the employee.
Process of Human resource: Human resource processes are the strategies made by the hr
leaders to implement employee life cycle and work experience.
Types of HR process are:
Human resource planning: These are the process of forecasting people. It includes the
process like layoff, promotion and evaluation.
 Recruitment: These process is used by the company to recruit employees to fill job
vacancy.
 Selection: After recruitment next level is selecting right candidate for right job who is
expert in terms of qualification and skills.
 Hiring: It is related to deciding the final candidate for the vacant job.